Note : Les descriptions sont présentées dans la langue officielle dans laquelle elles ont été soumises.
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SYSTEM AND METHOD FOR SECURED ELECTRONIC
TRANSACTIONS
BACKGROUND OF THE INVENTION
Field of the Invention
The present invention relates to electronic transactions and, more
specifically,
to a system a~ld method for ensuring transmittal of payment and product in
transactions.
Relevant Technolo~y
Electronic commerce is an expa~lding and dynamic form of business which is
receiving growing acceptance. Although, the term "electronic commerce" is used
loosely, it is frequently associated with transactions which occur over a
network, such
as the Internet. Internet commerce is attributed with an ever increasing
portion of
various markets and is a popular method for performing transactions. Numerous
merchants have expanded into the Internet market and have noted the advantages
in
having an electronic presence. These advantages include reducing physical
store
location expenses and reducing inventory distributions to the various store
fronts.
Thus, merchants are able to consolidate their inventory in a central location
and
reduce expenses. Consumers enjoy the convenience in shopping on-line and
avoiding
crowds, parking, and difficulties in finding products.
Credit and debit card technology readily lends itself to electronic commerce.
An account number may be readily transferred over the Internet and verified.
Thus, a
customer may enter or otherwise use the credit or debit card. Debiting or
crediting is
frequently performed first by the merchant before the customer receives the
product.
The customer is therefore at a disadvantage in that the customer has in effect
transferred a payment before receiving the product. If the product is not sent
or
received, or if the product is received in unacceptable condition, the
customer must
seek recourse from the merchant or from the third party account holder. This
is often
an unpleasant and inconvenient task and may not remedy the situation to the
customer's satisfaction.
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Alternatively, the product may first be shipped or otherwise transmitted and
then the customer's account may be debited or credited upon receipt. This
scenario is
unacceptable for merchants who must send products without first having
assurances
of payment. Thus, transactions which are not performed at store fronts are not
simultaneous in that either one party or the other receives their compensation
first.
In the information age, products may be embodied and sold as electronic
signals, such as executable files, operational data, data structures, and so
forth. Thus,
the electronic signals may constitute software applications which may be
purchased
and downloaded. The electronic signals may also constitute various computer
readable media such as text, audio, and video files. Such electronic signals
are
referred to herein collectively as product files. The customer may receive and
store
the purchased electronic signals on the customer's computer for use.
A common issue in a transaction involving a product file is to ensure that
payment for the product file is confirmed before the product is sent.
Likewise, it is a
concern to ensure that receipt of the product file is verified before payment
is sent.
Given that the transaction is entirely based on the transfer of electronic
signals, one
entity may withhold their obligation in the transaction while receiving the
benefit.
The transfer of electronic signals which constitute payment and product may
provide
an opportunity for unscrupulous individuals to take advantage of the system.
A further innovation in the arena of electronic commerce is the introduction
of processor clop cards or "smart cards." The so-called smart card is capable
of
processing instruction code and has far more advanced memory capability than
the
traditional magnetic strip cards. The smart card is able to process and manage
transactions for a plurality of accounts stored on the card. The accounts may
include
debit, credit, and incentive accounts, which may be redeemable for goods and
services. The smart card is capable of managing and maintaining running totals
of the
user's accounts. A smart card user may therefore store multiple accounts on a
single
smart card and enjoy the security and convenience of the smart card.
Furthermore, the
smart card may be readily integrated into electronic transaction technology.
Given the
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benefits of smart card technology, it is anticipated that it will ultimately
replace
magnetic strip cards.
Thus, it would be advantageous to prepare an electronic transaction system
which incorporated smart card technology.
It would be an advancement in the art to provide simultaneous and secured
exchanges in electronic transactions.
It would be a further advancement in the art to provide verifiable receipt of
product files and payments during an exchange.
It would be yet another advancement in the art to provide a system and
method which ensured that both parties accepted payment and product before
releasing their owed compensation.
Such a device is disclosed and claimed herein.
SUMMARY OF THE INVENTION
The present invention incorporates a buyer portable device having a value
stored thereon and a buyer provider device, in electronic communication with
the
portable device. The buyer portable device and the buyer provider device are
configured to operate in conjunction to generate a view-only payment file and
a
payment file reflecting an adjustment to the value. A buyer base device is in
electrical
communication with the buyer portable device and the buyer provider device and
is
configured to transmit the view-only payment file and the payment file across
the
network.
A seller base device is also in electrical communication with the network.
The invention may further include a seller portable device and seller provider
device
in electrical communication with the seller base device. The seller base
device is
configured to receive the view-only payment file and the payment file from the
network during a transaction. The seller base device is further configured to
transmit
a view-only product file and a product file to the buyer base device.
In operation, a buyer accesses the networlc through the buyer base device.
The buyer may then review a seller's site which is hosted on a seller base
device.
When the buyer may select one or more products on the site to purchase. The
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products are capable of being embodied in a computer readable format and
therefore
may be electronically transmitted. To begin the transaction, the buyer places
the
buyer portable device in electrical communication with the buyer base device.
The
buyer base device deducts the purchase amount from the buyer portable device
and
relays the purchase amount to the buyer provider device.
The buyer provider device generates a payment file which constitutes
payment and a view-only payment file which confirms the existence of the
purchase
amount file. The buyer provider device encrypts the view-only payment file
with a
buyer system key. The buyer provider device further encrypts the payment file
with a
buyer user key received from the buyer portable device and the buyer system
key. The
view-only payment file and the payment file are simultaneously sent to the
seller base
device.
The seller base device sends the view-only payment file and the payment file
to a seller provider device which is in electrical communication with the
seller base
device. The seller base device retrieves the product and sends it to the
seller provider
device. The seller provider device generates a view-only product file and a
product
file. The product file contains the product and is encrypted with a seller
user key and
a seller system lcey. The seller user lcey may be retrieved from a seller
portable device
in electrical communication with the seller base device. The view-only product
file
confirms the existence of the product file and is encrypted with the seller
system key.
The view-only product file and the product file are simultaneously sent to the
buyer base device. The buyer base device then sends the product file and the
view-
only product file to the buyer provider device.
The buyer provider device and the seller provider device decrypt the view-
only product file and the view-only payment file respectively. The buyer and
seller
are therefore able to confirm that the product file and the payment file are
stored
locally. Upon approval by the buyer and seller, the buyer and seller user keys
are
exchanged to allow decryption of the product and payment files. The buyer is
then
able to utilize the product. The seller may add the value reflected by the
payment file
to a value stored on the seller portable device.
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In this manner transactions may be performed over a network, such as the
Internet, that ensure that both parties receive their respective compensation.
Payment
may be immediately taken from a buyer's account and subsequently added to a
seller's
account. The product may be made immediately available to the buyer. The
provider
devices act as an escrow agent to ensure that there is authorization before
decrypting
and releasing their respective product and payment files.
The invention may also be used with shipment of tangible products. In this
situation, the seller base device and the seller provider device are manually
carried by
the shipping agent. If the product is accepted, the buyer portable device is
placed in
electrical connnunication with the seller base device. The buyer user key is
then
transmitted to the seller provider device. The seller provider device is then
able to
unloclc the payment file. The payment file may then be transferred to a seller
portable
device in electrical communication with the seller provider device.
BRIEF DESCRIPTION OF THE DRAWINGS
These and other more detailed features of the present invention are more fully
disclosed in the following specification, with reference to the accompanying
drawings, in which:
Figure 1 is a schematic block diagram of a computer system suitable for
implementing one embodiment of the invention;
Figure 2 is a flow diagram illustrating steps performed during operation of
the
invention;
Figure 3 is a flow diagram illustrating steps performed during operation of
the
invention;
Figure 4 is a flow diagram illustrating steps performed during operation of
the
invention;
Figure 5 is a flow diagram illustrating steps performed during operation of
the
invention; and
Figure 6 is a flow diagram illustrating steps performed during operation of
the
invention.
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DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
A preferred embodiment of the invention is now described with reference to
the Figures 1-6, where like reference numbers indicate identical or
functionally
similar elements. The components of the present invention, as generally
described
and illustrated in the Figures, may be implemented in a wide variety of
configurations.
Thus, the following more detailed description of the embodiments of the system
and
method of the present invention, as represented in the Figures, is not
intended to limit
the scope of the invention, as claimed, but is merely representative of
presently
preferred embodiments of the invention.
Various components of the invention are described herein as control
programs. In one embodiment, the control programs may be implemented as
software, hardware, firmware, or any combination thereof. For example, as used
herein, a control program may include any type of computer instruction or
computer
executable code located within a memory device and/or transmitted as
electronic
signals over a system bus or network. Am identified control program may, for
instance, comprise one or more physical or logical blocks of computer
instructions,
which may be organized as an obj ect, procedure, function, or the like.
Nevertheless, the identified control programs need not be located together,
but may comprise disparate instructions stored in different locations, which
together
implement the described functionality of the control program. Indeed, a
control
program may comprise a single instruction, or many instructions, and may even
be
distributed over several different code segments, among different programs,
and
across several memory devices.
Refernng to Figure 1, a schematic block diagram illustrating a computer
system 10 of the present system is shown. The system 10 utilizes a buyer
portable
device 12 having a processor 14 and a memory 15 in electrical communication
with
one another. The memory 15 may include a read only memory (ROM) 16 having a
control program 18 instructed to perform the functions of the present
invention. The
control program 18 would enable the portable device 12 to perform crypto-
processing
to encrypt and decrypt data files as required by the invention. The memory 15
may
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further include a random access memory (RAM) 20 and a non-volatile memory 22.
The RAM 20 serves as a short term memory for temporarily storing operational
information. Information stored within the non-volatile memory 22 may include
a
PIN number or other authorization code as well as a user key 124 for use in
encrypting
certain data files as will be explained subsequently.
The non-volatile memory 22 may also contain monetary, financial, or
incentive accounts reflecting certain amounts of value. Thus, the non-volatile
memory 22 may include f nancial transaction data, credit or debit amounts,
incentive
credits, and the like as well as information relating to past transactions.
The non-
volatile memory 22 may therefore contain information sufficient to allow
debiting or
crediting of an account as would be required in a transaction.
The buyer portable device 12 is of a size and shape which allows a buyer to
conveniently carry it in the palm of the buyer's hand. In one embodiment, the
portable buyer device 12 may be a processor card or a smart card as it is
sometimes
referred to in the art. The portable buyer device 12 may be an International
Standards
Organization (ISO) type "7816 IC card" or it may be a Personal Computer Memory
Card International Association (PCMCIA) type card. One of skill in the art
will
appreciate that the portable buyer device 12 may be embodied in numerous ways
given the relative small size of processor and memory chips.
The buyer portable device 12 may be used as a debit or credit card to
authorize payment of a transaction amount at the conclusion of a transaction.
The
buyer portable device 12 may also be used to store a running total of a debit
or credit
amount. As defined herein the term value refers to a debit or credit amount
which
may be deducted from or added to as required for the transaction.
The system 10 further comprises a buyer base device 24~which supports the
interaction of the buyer portable device 12 with other components of the
system 10.
The buyer base device 24 further provides the support for completing
transactions.
The buyer base device 24 comprises a base processor 26 which is in electrical
communication with a memory 28 having a ROM 30, RAM 32, and a non-volatile
memory 34. The base device 26 further includes a control program 3S stored
within
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the ROM 30 to enable operation of the base device 26. The control program 35
instructs the processor 26 in operations relating to transactions and
interfacing of
components required in the system 10.
The memory 28 may be connected to the base processor 26 through a
common bus 36. The base device 24 may further include an input device 38 such
as a
mouse, keyboard, and the like. The base device 24 may further include an
output
device 40 such as a display monitor, LED display, printer, and the like, to
allow buyer
interaction with the buyer base device 24.
The base device 24 further includes a portable interaction device 42 to enable
electrical communication between the portable buyer device 12 and the base
device
24. The portable interaction device 42 may provide communication through
actual
physical contact with the portable buyer device 42 or through wireless
communication
such as microwave, radio frequency, or infrared.
The system 10 further includes a buyer provider device 50 which may be
embodied as the buyer portable device 12 and placed in electrical
communication with
the base device 24. Alternatively, the buyer provider device 50 may be
embodied as
an integrated circuit or microchip wluch is resident within the base device
24. In any
of the embodiments the buyer provider device 50 may be removable to allow
updating
of the buyer provider device 50 as needed. The provider device 50 may be
embodied
with a processor 52 and a memory 54 in electrical communication with the
processor
52. The memory 54 may be similar or equivalent to that of the base device 24.
In one
embodiment, the provider device 50 and the base device 24 may actually share
memory 28, 54. The memory 54 includes a provider control program 56 to enable
the
operations of the provider device 50. The provider control program 56 is
configured
to perform crypto-processing to encrypt and decrypt data files as required by
the
invention. The provider device 50 serves to provide security with the
electronic
transactions as will be explained subsequently.
The base device 24 further includes a network interface device 60 to enable
communication with a network 62. As defined herein, the network may include a
local area network (LAND, wide area network (Wale, a global computer network,
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such as the Internet, or a limited access network such as an Intranet. Thus,
the term
network 62 is used broadly herein to describe any number of electronic
communication mediums between various computer stations.
In performing a transaction, the buyer base device 24 accesses a seller base
device 64 through the networlc 62. In one embodiment, the seller base device
64 may
be embodied similar or equivalent to the buyer base device 24. The seller base
device
64 would therefore have a network interface device 66, a processor 68, and a
memory
70. The memory 70 may include a ROM 72, a R.AM 74, and a non-volatile memory
76. The ROM 72 may have stored thereon a seller control program 78. The seller
base device 64 may further include a portable device interface 80 and a.bus 76
to
provide electrical communication for the components. The seller base device 64
may
further include input and output devices 84, 86 to enable interaction with a
seller.
The system 10 may further comprise a seller portable device 88 embodied as
the buyer portable device 12 and having a processor 90 in electrical
communication
with a memory 92. The memory 92 may include a ROM 94, RAM 96, and non-
volatile memory 98. The memory 92 may have a control program 100, stored in
the
ROM 94 to effect operation of the seller portable device 88. The control
program 100
is configured to perform crypto-processing to encrypt and decrypt data files
as
required by the invention. The system 10 further includes a seller provider
device
102 which may be physically resident on the seller device 64 or may be placed
in
electrical communication with the seller device 64. The seller provider device
102
may be embodied as the buyer provider device 50 with a processor 104 in
electrical
corninunication with a memory 106. The memory 106 includes a provider control
program 108 to enable the operations of the seller provider device 102. As
with the
buyer provider device 50, the control program 100 is configured to perform
crypto-
processing to encrypt and decrypt data files as required by the invention. The
seller
provider device 102 may also encrypt data stored in the seller base device 64
to
provide additional security for the buyer.
In one embodiment, the seller portable device 88 may be replaced with a
system to accommodate numerous buyers and numerous products. In such an
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embodiment, the seller base device 64 is in electrical communication with a
database
interface 110. The database interface 110 provides a gateway to the seller
base device
64. The database interface 110 would further be in electrical communication
with a
database manager 112. The database manager 112 may be resident on a mainframe
computer and is configured to perform operations such as those performed by
the
seller portable device 88. The database manager 112 is further in electrical
communication with a database 114. The database 114 may provide numerous
addressable datasets wherein product files are stored. The database manager
112
would perform encryption of the product files and decryption of the payment
files as
explained subsequently. Electrouc payments for the products may be stored on
the
database 114.
In yet another embodiment, the system 10 would comprise both the seller
portable device 88 and the database 114. The seller portable device 88 may be
used to
perform the various functions relating to encryption of the product file and
decrypting
and storing the payment. The database interface 110, the database manager 112,
and
the database 114 provide storage, management, and accessing of product files.
Thus,
a transaction involves retrieving the product file from the database 114 and
uploading
the payment to the seller portable device 88.
During a transaction the system generates a view-only payment file 120 and a
payment file 122. The view-only payment file 120 and the payment file 122 are
sent
from the buyer base device 24 to the seller base device 64. In one embodiment,
the
payment file 122 is encrypted with a buyer user key 124. The view-only payment
file
120 and the payment file 122 may also be encrypted with a buyer system key
126.
The system 10 further generates a view-only product file 128 and a product
file 130. The view-only product file 128 and the product file 130 are sent
from the
seller base device 64 across the network 62 to the buyer base device 24. In
one
embodiment, the product file 130 is encrypted with a seller user key 132. The
view-
only product file 128 and the product file 130 may also be encrypted with a
system
key 126.
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Referring now to Figure 2 and with continuing reference to Figure 1, a flow
diagram 200 is shown illustrating steps performed from the perspective of a
buyer.
The objective is to complete an electronic transaction over the network 62
which
insures that both the buyer and seller receive their compensation in the
transaction.
In step 202, the process begins.
In step 204, a buyer enters a request to purchase a product. At this time it
is
contemplated that the buyer base device 24 is in electrical communication with
the
seller base device 64 over the networlc 62. The buyer base device 24 may be
downloading documents reflecting products available for purchase through a
conventional browser or through other network communication means. The
products
available for sale may be displayed on the output device 40. Upon entering a
request
through the input device 38 to purchase a product, the process continues to
step 206.
In step 206, the purchase amount is stored in the memory 28 of the buyer base
device 24. The buyer base device 24 then requests the purchase amount from the
buyer portable device 12. The buyer portable device 12 verifies that there is
sufficient
value stored in the non-volatile memory 22 to perform the transaction. As
previously
stated, value may reflect a certain amount of credits, debits, incentive
points, and so
forth available for the transaction. If there is sufficient value stored in
the buyer
portable device 12, then the process continues to steps 208 and 210.
Steps 208 and 210 are performed simulta~.ieously. In step 208, a view-only
payment file 120 may be generated by the buyer provider device 50 or the buyer
base
device 24. The view-only payment file 120 is a data file which verifies the
existence
of a payment file 122. The payment file 122 is a reflection of an actual
payment
amount wluch is tal~en from the value stored on the buyer portable device 12.
Thus,
the payment file 122 may be a reflection of added credit or subtracted debit
which
adjusts the amount of value on the buyer portable device 12.
The view-only payment file 120 is generated only if there is sufficient value
on the buyer portable device 12 and upon creation of a payment file 122. The
view-
only payment file 120 is sent to the buyer provider device 50 wherein it is
encrypted
through known cryptology methods. In one embodiment, the view-only payment
file
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120 is encrypted using a buyer system key 126. As defined herein, a system key
is a
key which is available to users of the system 10 described herein. The system
key
may be stored on the provider device 50 or on the buyer portable device 12. It
is
anticipated that the seller will have access to the buyer system key 126 to
decrypt the
view-only payment file 120.
In step 210, the payment file 122 is generated by adjusting the value on the
buyer portable device 12. The payment file 122 reflects an actual payment for
a
product to be received. The payment file 122 may be sent to the buyer provider
device 50 where it is encrypted using a buyer user key 124. As defined herein
a user
key is one which is associated with a transacting pa~.-ty and more
specifically to a
portable device used by the transacting party. Therefore, a user key remains
confidential to the party and is not freely disseminated to transacting
members of the
system 10. The buyer user lcey 124 may be stored on the buyer portable device
12 and
then sent to the buyer provider device 50. Alternatively, the payment file 122
may be
encrypted by the buyer portable device 12 using the buyer user key 124.
The payment file 122 is further encrypted by the buyer provider device 50
with the buyer system key 126. Thus, encryption of the payment file 122 is a
two step
process which involves encryption by a buyer user key 124 and then encryption
by a
buyer system lcey 126. Decryption of the payment file 122 requires both the
buyer
system and user keys 124, 126.
Upon generation and encryption of the view-only payment file 120 and the
payment file 122, both files are sent across the network 62 to the seller. In
one
embodiment, the view-only payment file 120 and payment file 122 are batched
together. The view-only payment file 120 and the payment file 122 may also be
encrypted by the buyer provider device 50 together using the buyer system key
126. It
is preferred to transmit the view-only payment file 120 and the payment file
122
together as the view-only payment file 120 confirms the location and existence
of the
payment file 122.
In step 212, the seller base device 64 receives the view-only payment file
120.
The view-only payment file 120 is temporarily stored in the memory 70. The
view-
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only payment file 120 is sent to the seller provider device 102 and is
decrypted
through the use of the buyer system key 126. The buyer system key 126 may be
stored in the seller provider device 102. It is anticipated that users of the
system 10
will have access to the system keys as required to open view-only files. Thus,
the use
of the system keys serves to prevent non-users of the system from accessing
view-only.
payment files 120.
Once decrypted, the view-only payment file 120 may be sent to the seller base
device 64. The seller may open the view-only payment file 120 to confirm that
the
buyer has sent the payment file 122 and to confirm the amount of the payment.
The
decrypted view-only payment file 120 may be displayed on the output device 86.
If
the seller approves the amount of the payment, the process continues to step
214.
Otherwise, the process returns to step 204 wherein the buyer enters another
purchase
request.
In step 214, the payment file 122 is sent to the seller base device 64 and
subsequently sent to the seller provider device 102. The seller provider
device 102
stores the payment file 122 in the memory 106. The payment file 122 reflects
actual
payment for the transaction. Thus, the seller provider device 102 provides
security for
the temporary holding of the payment.
In step 216, the seller is assured of having received the payment file 122 by
having viewed the view-only payment file 120. The seller base device 64
accesses the
seller portable device 88 or the database manager 112 to verify the existence
of the
product. The seller portable device 88, the database manager 112, or the
seller
provider device 102 generates a view-only product file 128. The view-only
product
file 128 may be sent to the seller provider device 102 wherein it is encrypted
with a
seller system key 134. The seller system key 134 may be stored on the seller
portable
device 88 or on the seller provider device102. The view-only product file 128
is a
reflection of a product file 130 and confirms the existence and transmittal of
the
product file 130.
A product file 130 is a product that the buyer is ultimately transacting to
purchase. The product file 130 may constitute executable or operational data.
Thus,
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the product file 130 may include any number of software applications or
various
media such as text documents, songs, recordings, movies and so forth stored in
an
electronic format.
In step 216, the product file 130 is generated by accessing the computer
readable medium wherein the product is stored. The product file 130 reflects
the
product and may therefore be a copy of the computer readable product. The
product
file 130 may be generated by the seller portable device 88, the database
manager 112,
or the seller provider device 102. Preferably, the product file 130 is not
generated or
stored in a decrypted format on the seller base device 64. The seller base
device 64 is
exposed to the network 62. Therefore, if a hacker were to break through a
firewall on
the seller base device 64 the hacker may be able to access the product file
130 without
authorization. Once encrypted, the product file 130 may be stored in the
seller base
device memory 70.
The product file 130 is sent to the seller provider device 102 where it is
temporarily stored. The seller provider device 102 requests and receives the
seller
user lcey 132 which, in one embodiment, is stored in the seller portable
device 88.
The product file 130 is then encrypted by the seller provider device 102 with
the seller
user key 132. The product file 130 may further be encrypted by the seller
provider
device 102 with the seller system lcey 134. The view-only product file 128 and
the
product file 130 are then transmitted simultaneously to the buyer base device
24.
In step 218, the view-only product file 128 and the product file 130 are
received in the buyer base device 24. The view-only product file 128 and the
product
file 130 are sent to the buyer provider device 50 and stored in memory 54. The
buyer
provider device 50 decrypts the view-only product file 128 with the seller
system key
134. The seller system key 134 may have been stored in the buyer portable
device 12
or in the buyer provider device 50. Once again, it is a~iticipated that users
of the
system 10 will have access to the system keys 126, 134 discussed herein.
The product file 130 is stored in the memory 54 of the buyer provider device
50. The buyer is able to confirm receipt of the product file 130 by displaying
the
view-only product file 128 on the output device 40. If the buyer accepts the
product
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based on the view-only product file 128, then the buyer enters an
authorization to
transfer the buyer user key 124 to the seller base device 64. The process
continues to
step 218. If the buyer does not accept the product, the process continues to
step 224.
In step 220, the buyer base device 24 confirms receipt of the seller user key
132 based on an acceptance by the seller of the payment file 122. The seller
user key ,
132 may be stored in the buyer provider device 50 or in the buyer portable
device 12.
In step 220, the seller base device 64 confirms receipt of the buyer user key
124 which
is similarly stored in the seller provider device 102 or in the seller
portable device 88.
If the buyer alld seller user keys 124, 132 are not transmitted then the
process
continues to step 224.
In step 222, the buyer base device 24 receives a confirmation from the seller
base device 64 that the buyer user key 124 was received. This confirmation is
passed
to the buyer provider device 50 or the buyer portable device I2 which has the
seller
user key 132. The seller user key 132 is then released and the buyer provider
device
50 decrypts the product file 130. The product file 130 may then be transferred
to the
buyer portable device 12, buyer base device 24, or stored in any other
suitable
computer medium. If the buyer is unable to decrypt the product file 130 then
the
process continues to step 224.
In step 224, the transaction is aborted because the product or payment file
130, 122 was not accepted, the user keys 124, 132 were not transmitted, or the
product
or payment file 130, 122 did not open. In such an event, any adjustments made
to the
value stored on the buyer portable device 12 are reversed to reflect the
amount of
value prior to the aborted transaction. The process then continues to step
204.
In step 226, the process terminates reflecting the end of a completed
transaction.
Referring to Figure 3, a flow diagram 300 illustrating the process of
performing a transaction in accordance with the present invention is shown
relative to
the seller's perspective. In step 302, the process beings. In step 304, a
purchase
request has been entered by the buyer and this request is transferred to the
seller base
device 64.
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The process continues to steps 306 and 308 which are performed
simultaneously. In step 306, the view-only payment file 120 is transmitted
over the
network 62 and received at the seller base device 64. The seller base device
64 sends
the view-only payment file 120 to the seller provider device 102. The seller
provider
device 102 decrypts the view-only payment file 120 with a.buyer system key
126.
The buyer system key 126 may be retrieved from the seller portable device 88
or may
be resident on the seller provider device 102. Once decrypted, the seller may
display
the view-only payment file 120 on the output device 80.
In step 308, the payment file 122 is received by the seller base device 64 and
stored in the seller provider device 92. The payment file 122 is thus stored
until a
confirmation is received that the buyer has received the product file 130.
In step 310, the seller determines whether or not the payment amount is
acceptable based on an evaluation of the view-only payment file 120. It is
preferable
that the view-only payment file 120 and the payment file 122 be transmitted to
the
seller base device 64 together to ensure that both files are received and
present. Thus,
the view-only payment file 120 serves as verification of the existence and
receipt of
the payment file 122. If the payment amount is acceptable, the process
continues to
steps 312 and 314.
In step 312, the view-only product file 128 may be generated by the seller
base device 64 or by the seller portable device 88, the seller provider device
102, the
database manager 112, or a combination thereof. The view-only product file 128
is
encrypted with a seller system key 134 prior to transmission. In one
embodiment, the
view-only product file 128 is sent to the seller provider device 102 where it
is
encrypted with a seller system key 134. Thus encrypted, the view-only product
file
128 is sent to the buyer base device 24.
Step 314 is executed simultaneously with step 312. In step 314, the product
file 130 is retrieved from the seller portable device 88, the database 114, or
other
computer readable memory in electrical communication with the seller base
device
64. As previously mentioned, the product file 130 is a module representing the
product that the buyer is purchasing. The product file 130 is sent to the
seller provider
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device 102 where it is encrypted using a seller user key 132. The seller user
key 132
may be stored on the seller portable device 88 and sent to the seller provider
device
102 for encryption. After encryption, the product file 130 is transmitted to
the buyer
base device 24.
In step 316, a query is made as to whether the buyer has accepted the product.
Acceptance of the product is based on the buyer's examination of the view-only
product file 128. If the product is acceptable to the buyer, the buyer
portable device
12 releases the buyer user key 124 to the buyer base device 24. The buyer base
device
24 transmits the buyer user lcey 124 to the seller base device 64. Upon
receipt, the
buyer user key 124 is stored in the seller provider device 102.
Simultaneously, the
seller may be reviewing the view-only payment file 120 to determine if the
payment is
acceptable. If so, the seller authorizes the seller portable device 88 to
release the
seller user key 132. The seller user lcey 132 is sent to the seller base
device 64 which
then sends the seller user key 132 to the buyer base device 24. If the product
is not
accepted by the buyer, the process returns to step 304 wherein the buyer may
select
another product.
In step 318, a decision is made to determine if the buyer user key 124 and the
seller user key 132 have been exchanged. A confirmation may be sent by the
buyer
base device 24 to confirm receipt of the seller user key 132. If the user keys
124, 132
have been exchanged, then the process continues to step 320. Otherwise the
transaction is aborted and the process returns to step 304 wherein the buyer
may select
a product.
In step 320, the buyer provider device 50 unlocks the product file 130 with
the seller user key 132. At approximately the same time, the seller provider
device
102 may unlock the payment fi1e122 with the buyer user key 124. If the buyer
provider device 50 is unable to open the product file 130, then the
transaction is
aborted and the process returns to step 304.
If the buyer provider device 50 is able to open the product file 130, then the
opened product file 130 is sent to the buyer base device 24. The buyer is then
able to
access and use the product file 130. A confirmation that the buyer has opened
the
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product file 130 may be sent to the seller base device 64. The process further
continues to step 322.
In step 322, the buyer has opened the product file 130. The seller provider
device 102 similarly opens the payment file 122 using the buyer user and
system keys
124, 126. The payment file 122 is sent to the seller base device 64. The
seller base
device 64 transfers the payment file 122 to a computer readable medium such as
the
seller portable device 88. The value represented by the payment file 122 may
then
added to a value stored on the nonvolatile memory 98 of the seller portable
device 88.
The value may be in the form of currency, credit, incentive points, or various
other
forms of incremental value. Alternatively, the payment file 122 may be sent to
the
database manager 112. The database manager 112 then adds the value represented
by
the payment file 122 to an addressable data segment in the database 114. In
this
manner, the seller may be compensated in the transaction.
In step 324, the transaction is completed and the process terminates.
Referring to Figures 4, 5, 6 a flow diagram 400 representing an overview of
one method of performing the present invention is shown. In step 402, the
process
begins. In step 404, the buyer accesses the network 62 through the use of the
buyer
base device 24. In one embodiment, the buyer base device 24 may be embodied as
a
computer station and the network 62 may be embodied as the Iliternet. The
buyer
base device 24 may be continuously linked to the network 62 or the buyer base
device
24 may log onto the network 62 as required.
In step 406, the buyer accesses the seller base device 64 across the network
62. In one embodiment, this may be accomplished by accessing a seller's
website on
the Internet. As such, the buyer may use a conventional web browser to
retrieve the
HTML documentation reflecting the seller's website. The seller's website may
be
hosted on the seller base device 64.
In step 408, the buyer decides to perform a transaction. This may be based on
a product which the buyer sees listed on the seller's site. The buyer may
enter one or
more products that the buyer wishes to purchase. The products are those which
may
be stored and transmitted in an electronic format. Thus, the products may be
software
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applications or electronic forms of media such as audio, text, video and so
forth.
hl step 410, the buyer has selected one or more products to purchase. The
buyer base device 24 returns with a request to insert the buyer portable
device 12 into
the interface device 42 so that the buyer base device 24 and the buyer
portable device
12 are in electrical connnunication. The buyer portable device 12 is used to
transfer
payment for the transaction and for encryption of the payment file 122.
In step 412, the buyer base device 24 and the buyer portable device 12
generate and send encrypted signals between one another. The encrypted signals
are
used for security purposes to confirm that the devices 12, 24 are legitimate
for use
with one another. The encrypted signals further confirms that the buyer
portable
device 12 is compatible for use with the buyer base device 24.
In step 414, the buyer portable device 12 and the buyer base device 24 receive
their respective encrypted signals. The encrypted signals are decrypted. In
one
embodiment, encryption and decryption may be based on a buyer system key 126
which is accessible by various devices of the system.
In step 416, a determination is made as to whether the buyer portable device
12 is a legitimate and compatible device. This determination is made based on
the
encrypted signals received by the buyer base device 24. In one embodiment,
this
determination may also be made by requiring the buyer to enter an
authorization code,
such as a PIN, into the input device 38. Through the use of an authorization
code, the
buyer base device 24 may determine if the buyer is a legitimate owner of the
buyer
portable device 12. If the buyer portable device 12 is not valid or if the
authorization
code is not correct, then the process returns to step 410. A prompt is then
sent to
request another buyer portable device 12. If the buyer portable device 12 is
valid and
the authorization code is correct, then the process continues to step 418.
In step 418, the buyer base device 24 accesses the buyer portable device 12 to
determine the accounts that are stored on the buyer portable device 12. The
buyer
portable device 12 may contain a plurality of accounts including debit,
credit, and
incentive accounts. These accounts contain value which may be debited or
credited as
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required to complete the transaction. These accounts may be listed and
displayed by
an identifier on the output device 40.
In step 420, the buyer selects an account which will be used in the
transaction
to purchase the selected product.
In step 422, the buyer portable device 12 sends the appropriate key to unlock
the selected account file. The accounts are locked to prevent unauthorized
access and
tampering with values in the accounts. Transmittal of a key may be based on
the
buyer entering an appropriate account number in the input device 38. If the
key is not
sent to the buyer base device 24, then the process returns to step 418 wherein
the
buyer selects another account. Otherwise, the process continues to step 424.
In step 424, the buyer base device 24 determines if there is value in the
account for the transaction. This decision may determine if there is
sufficient value in
the account to purchase the selected product. If there is sufficient value,
the process
continues to step 426, otherwise the process returns to step 418 wherein the
buyer
selects aslother account.
W step 426, the value in the account is adjusted to reflect a payment amount.
With a credit account the value is added and in a debit account the value is
deducted is
common practice.
In step 428, the view-only payment file 120 is generated and encrypted with a
buyer system key 126 as previously described. In one embodiment, the
generation of
the view-only payment file 120 may be performed by the buyer portable device
12, the
buyer provider device 50, or a combination thereof. The view-only payment file
120
is sent to the buyer provider device 50 where it is encrypted using a buyer
system lcey
126. The view-only payment file 120 confirms the existence, amount of value,
and
presence of the payment file 122. However, the view-only payment file 120 does
not
actually constitute value.
In step 430, the payment file 122 is generated by the buyer portable device
12, the buyer provider device 50, or a combination thereof. The payment file
122 is
further encrypted with buyer system and user keys 124, 126 as previously
described.
The payment file 122 is a reflection of the purchase price of the product and
is derived
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from the value in the selected account. The payment file 122 may be
temporarily
stored in the buyer provider device 50.
In step 432, the view-only payment file 120 and the payment file 122 are sent
by the buyer base device 24 over the network 62 to the seller base device 64.
In one
embodiment, the view-only payment file 120 and the payment file 122 are
batched
together to ensure that they are jointly received. The view-only payment file
120 and
payment file 122 may further be encrypted together with the buyer system key
126.
In step 434, the seller base device 64 receives the view-only payment file 120
and the payment file 122. The view-only payment file 120 and the payment file
122
may be received batched and encrypted together.
In step 436, the view-only payment file 120 and the payment file are stored in
the seller provider device 102. The seller provider device 102 decrypts the
view-only
payment file 120 and the payment file 122 with the buyer system key 126. The
buyer
system key 126 may be stored on the seller provider device 102 or retrieved
from the
seller portable device 88. After decryption with the buyer system key 126, the
seller
provider device 102 stores the payment file 122 in its memory 96 and sends the
now
decrypted view-only payment file 120 to the seller base device 64.
In step 438, the seller accepts the value represented by the view-only payment
file 120. Acceptance may be automated and performed by the seller base device
64
provided that the value satisfies the purchase price. Alternatively, the
seller base
device 64 may display the value on the output device 86 and the seller may
manually
enter an acceptance. If the value is not sufficient, the process returns to
step 406
wherein the buyer returns to the seller's site. If the value is sufficient,
the process
continues to step 440.
In step 440, the product file 130 is accessed from a computer readable
medium, such as the seller portable device 88 or the database 114. The seller
portable
device 88, the seller provider device, or these devices acting in conjunction
generate a
view-only product file 128 which confirms the identity and presence of the
product
file 130. The view-only product file 128 is sent to the seller provider device
102
wherein it is encrypted with the seller system key.
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In step 442, the product file 130 is sent to the seller provider device 102.
The
product file 130 may be an electronic copy of the product stored in a computer
readable medium. The seller provider device 102 encrypts the product file 130
using
the seller user key 132 and the seller system key 134. In one embodiment, the
view-
only product file 128 and the product file 130 are batched together and
jointly
encrypted with the seller system key 134. The seller user key 132 may be
retrieved
from the seller portable device 88. In this manner, aspects relating to
encryption may
be performed by the seller provider device 102.
In step 444, the view-only product file 128 and the product file 130 are sent
by the seller base device 64 via the network 62 to the buyer base device 24.
The buyer
base device 24 receives these files and, in one embodiment, sends them to the
buyer
provider device 50 for temporary storage.
In step 446, the view-only product file 128 is decrypted by the buyer provider
device 50 using the seller system key 134. The view-only product file 128 and
the
product file 130 may be simultaneously decrypted using the seller system key
134.
The decrypted view-only product fi1e128 is sent to the buyer base device 24.
The
view-only product file 128 may be displayed on the output device 40. The buyer
may
then verify that the product file 130 has been received and is stored in the
buyer
provider device 50. If the buyer accepts the product based on the examination
of the
view-only product file 128, then the process continues to step 448. Otherwise,
the
process returns to step 406.
In step 448, the product file 130 and the payment file 122 are in the buyer
provider device 50 and the seller provider device 102 respectively. The buyer
provider device 50 and the seller provider device 102 may send confirmation of
the
receipt of the product file 130 and the payment file 122 to each other. The
buyer base
device 24 and the seller base device 64 may further send confirmation of
acceptance
of the product and payment files 122, 130 to one another.
The buyer provider device 50 then sends the buyer user key 124 to the seller
base device 64 which in turn sends the buyer user key 124 to the seller
provider
device 92. Similarly, the seller provider device 102 sends the seller user key
132 to
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the buyer base device 24 which in turn sends the seller user key 132 to the
buyer
provider device 50.
In step 450, the buyer provider device 50 decrypts the product file 130 with
the seller user key 132. The product file 130 is then sent to the buyer base
device 24
where it is accessible to the buyer. The seller provider device 102 decrypts
the
payment file 122 with the buyer user key 124. The payment file 122 is then
sent to
the seller base device 64 where it is accessible to the seller. After
decryption, the
buyer provider device 50 may delete the seller user key 132 and the seller
provider
device 92 may delete the buyer user key 124. In this manner, security of the
buyer and
user keys may be maintained.
In step 452, the payment file 122 may be sent to the seller portable device 88
or to the database 114. The value represented by the payment file 122 may then
be
added to an account in the seller portable device 88 or in the database 114.
In step 454, the transaction is complete and the process terminates.
The present invention provides a system and method to ensure that the buyer
and seller receive their respective product and payment. From the buyer's side
of
operations, the invention requires the communication of the buyer portable
device 12
which contains value and the buyer user lcey 124. The invention further
requires the
buyer provider device 50 which performs the encryption and decryption of the
data
files. Similarly, the invention requires a seller portable device 88 or
database 114
having a seller user key 132 and a product. A seller provider device 102 is
also
required to perform the encryption and decryption of the data files. The buyer
base
device 24 and the seller base device 64 provides support for the transactions
and
interfacing with the networlc 62.
The portable devices 12, 88 provider devices 50, 102, and system and user
keys 124, 126, 132, 134 operate in conjunction to prevent fraudulent
transactions and
unauthorized use. It is anticipated that the buyer base device 24, the buyer
portable
device 12, and the buyer provider device 50 operate in conjunction with buyer
user
and system keys 124, 126 to perform the functions of the invention from the
buyer's
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side. The absence of one of these components, or their equivalent, would
prevent
operation of the invention.
Of course, one of skill in the art will appreciate that variations on the
present
invention are possible and are included within the scope of the invention. For
example, where the seller is embodied as a large entity, a seller portable
device 88 is
impractical to accommodate the magnitude of transactions that may be required.
Therefore a database management system 110, 112, 114 configured for large
scale
operations is introduced as an alternative embodiment.
It is contemplated by the present invention that variations may be made on the
location of the user and system lceys and the devices which perform the
encryption
and decryption. For example, the seller user key 132 may be stored on the
buyer
portable device 12 and the buyer user key 124 may be stored on the seller
portable
device 88. The provider devices 50, 102 may then request the user keys 124,
132 for
decryption. The system keys 126, 134 may also be stored on the portable
devices 12,
88. The portable devices 12, 88 may further perform one or more of the
encryption or
decryption processes.
As the base devices 24, 64 are subject to hacker intrusions, it is preferable
that no decrypted files are stored on the base devices 24, 64. Thus, the base
devices
24, 64 do not perform encryption or decryption. The system and user keys 124,
126,
132, 134 are also not stored in the base devices 24, 64. Transactions may be
performed in a network environment without intrusions into sensitive
information on
the buyer devices 24, 64. Account information is stored in the base devices
24, 64
only in an encrypted format to thereby thwart attempts to retrieve this
information.
The present invention ensures that product and payment delivery axe completed
in a
secure fashion and further maintains the integrity of the transaction.
In an alternative method, the buyer base device 24 may interact with the
database interface 110, database manager 112, and the database 114 to perform
the
transaction of the present invention. In such a method, the database 114 may
store the
product files 130 and accounts reflecting value. Thus, the database 114 may
provide
storage similar to that provided by the seller portable device 88. The
database
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manager 1 I2 may be configured to interact with the database 114 to retrieve
the
required product files 130 and manage the accounts. This is advantageous where
there are numerous products to offer or numerous accounts and transactions to
manage. The incorporation of a database 114 or even a plurality of databases
114
enables scalability which may be required in an Internet environment. The
database
manager 112 may be further configured to perform the functions of the seller
base
device 64 and the seller provider device 102. The database interface 110
provides the
gateway to the network 62 for transactions.
In this manner transactions may be performed over a network, such as the
Internet, which ensures that both parties receive their respective
compensation.
Payment may be immediately taken from a buyer's account and subsequently added
to
a seller's account. The product may be made immediately available to the
buyer. The
provider devices act as an escrow agent to ensure that there is authorization
before
decrypting and releasing their respective product and payment files 130, 122.
Tangible products may also be purchased using aspects of the present
invention. Such methods would require that the merchant or agent deliver the
tangible product and manually provide a seller base device 64 and a seller
provider
device 102 in electrical communication with one another. The buyer portable
device
12 may interface with the seller base device 64 and therefore eliminate the
need for
the network 62 or the seller base device 64. The buyer portable device 12
would
transfer an amount of value stored therein to the seller base device 64.
The value may be encrypted by the buyer portable device 12 using the buyer
user key. The buyer portable device 12 transfers the buyer user key 124 upon
confirmation from the buyer. The buyer user lcey 124 is sent to the seller
base device
64 and then sent to the seller provider device 102. The seller provider device
102
decrypts the payment file 122 with the buyer user key 124. The payment file
122 may
then be transferred and stored as desired by the seller.
As a point-of sale operation would not involve a network, cextain components
are not required. Specifically, buyer and seller system lceys 126, 134 are not
required
because the tangible product may be examined. A seller user key 132 is also
not
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required as the tangible product is not encrypted. A buyer base device 24 is
also not
required as the buyer portable device may interface directly with the seller
base device
64.
The present invention may be embodied in other specific forms without
departing from its scope or essential characteristics. The described
embodiments are
to be considered in all respects only as illustrative and not restrictive. The
scope of
the invention is, therefore, indicated by the appended claims rather than by
the
foregoing description. All changes which come within the meaning and range of
equivalency of the claims are to be embraced within their scope.
What is claimed and desired to be secured by United States Letters Patent is:
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